This paper aims to focus on the HR system aspect of the firm specific advantages of multinational companies. The study explores the role and effect of staffing with expatriates in a subsidiary in the transfer and implementation of a HR system from hea...
This paper aims to focus on the HR system aspect of the firm specific advantages of multinational companies. The study explores the role and effect of staffing with expatriates in a subsidiary in the transfer and implementation of a HR system from headquarters to that particular subsidiary. The transfer of the HR system takes place in the background of institutional duality, country-specific institutional setting and regulations from the parent company. Based on the debate on institutional duality, the study develops a theoretical framework connecting the literature stream about the transfer and implementation of organizational practices in terms of expatriate influence on the HR system and the expatriate roles to gain a better understanding about transfer and implementation mechanisms of HR systems in subsidiaries of multinational companies. The theoretical model provided in this study gives a first insight into the influence of the subsidiary HR manager’s nationality on the transmission of the HR system from headquarters to subsidiaries and the resulting degree of overlap between the two systems. Three variables identified-the level of reputational effectiveness, the level of allegiance to the subsidiary and the level of parent country language skills of the HR manager in a subsidiary-are hypothesized to influence the overlap between the HR system at headquarters and subsidiaries.